New technology such as iPhones means there are new ways of swindling consumers and with 2012 predicted to be the year of the hi-tech fraudster, Cardiff Council’s Trading Standards are warning households to be on their guard against new tricks aimed at parting them with their cash. Targets for scams in 2012 are likely to include ATMs and the Olympics.
Deputy Leader of Cardiff Council, Councillor Judith Woodman, said: “We want to make sure that people are aware of the new types of scams around and ensure that they continue to be vigilant throughout the New Year.”
Some of the fraud trends to look out for and tips on how to avoid them are listed below.
Facebook fraud
With more of us using Facebook, Twitter and other networking media, fraudsters are using ‘social engineering’ to extort money. Once a virus infects a user’s computer, it will, when they next visit a site such as Facebook, raid the user’s ‘friends’ list. The virus then sends an email to each friend asking them to click on a link to view a photo or video. The friends trust the name of the sender, click on the link, and in doing so their computer becomes infected.
The emails might look like they come from a friend but click on them and they contain a hidden ‘package’. This could contain keystroke-logging software that will find your passwords and other details.
Alternatively, you may end up with a man-in-the-browser virus. When a user logs on to specific online banking sites, the virus, or Trojan, is activated and intercepts banking data.
What can you do to stop it?
Make sure your Facebook is ‘locked down’, and do not allow random people to view your list of friends or other personal details, even if these seem fairly innocuous to you. Remember that information such as your birthday could be valuable to a fraudster – your date of birth, for example, is a routine security question.
Do not click on strange attachments in your email – even if they purport to come from friends. If the text of the email sounds wrong in tone for a friend of yours, then think before you click.
iPads and Smartphones
Many people will have got shiny new media items for Christmas, including iPads and smartphones. For those who are new to the world of mobile internet browsing and apps, the devices could represent a gateway for attacks.
Beware of text message scams and ‘too good to be true’ apps. People with Android phones have been particularly vulnerable to this in recent weeks. The Android Market store, operated by Google, had a number of seemingly legitimate ‘free’ versions of premium titles. However, the downloads contained malware that sent premium-rate text messages to users. The apps were downloaded more than 10,000 times.
What can you do about it?
Check any apps you download onto new devices carefully for legitimacy and check your mobile phone bill regularly
Don’t respond to texts that are not from people you know.
Card not present fraud
With more and more of us shopping online, so-called ”card not present” fraud is a big risk. You’ll realise that you’ve been a victim of this type of fraud either when you receive a huge credit card bill, or large debit card purchases that you don’t recognise push you into overdraft.
This type of fraud can be perpetrated over the internet, by mail or on the phone – and in the majority of cases all the fraudster needs is your card number and sometimes the three digits on the back.
The number of people affected by this type of fraud is falling, but it is important to be on your guard. Verified by Visa and Mastercard Securecode – whereby customers enter a password when shopping online – are meant to protect consumers. However, these systems are ‘static rather than dynamic’, meaning that fraudsters could easily gain access to them.
What can you do to stop it?
Keep your card data safe and do not give out Pin numbers on the phone. Legitimate inquiries from your bank will not ask you for your entire Pin – only for selected digits.
Make sure your secure codes are truly secure: don’t give them out, and make them as complex as possible.
ATM issues
The increase in security online means that traditional methods of illegally obtaining money, for example from customers at cashpoints, are on the rise.
The ‘Lebanese loop’, for instance, is a scam which makes it appear as if your card has been swallowed, but the fraudster will be able to retrieve it later. He or she will have been standing behind you, watching as you enter your Pin number. They will then retrieve your card using the “loop”, and start using it themselves.
What can you do about it?
Make sure no one can see you typing in your Pin, and do not interact with seemingly well-meaning Good Samaritans who offer to help you if your card does get swallowed.
Look at the machine carefully before you use it – if you see anything that looks odd, do not use it.
Money mule cons
Money mule cons begin with a job being advertised, often involving “working from home”. Once recruited, ‘money mules’ receive cash into their bank accounts which will have been stolen from another compromised account. The mule is then asked to wire these funds overseas (minus a commission payment). In reality, this is money laundering. This process may continue smoothly for some time, until your bank account becomes compromised because you have clicked on infected emails from the fraudsters. Your bank account might then be emptied.
When the money laundering is discovered by police, often the ‘mule’ is the only identifiable link in the chain, and you might face prosecution, with your bank account frozen.
Other versions of this include the often badly spelt emails from foreign ‘dignitaries’ who ask you to send or receive money from them in exchange for a fee.
What can you do about it?
Do not respond to attractive-looking ‘Work from home’ opportunities unless you are sure they are legitimate.
Read emails carefully and do not offer to use your account to send and receive money for other people.
Olympic cons
The Olympics will be a particular target for fraudsters, experts have warned. While there will be attempts to hack the main Olympic ticketing systems, they are unlikely to be successful, so watch out instead for activity around the edges. ‘Packages’ offering tickets plus extras will be a particular focus for fraud.
What can you do about it?
Make sure that you are particularly careful with all Olympics-based transactions and check that the people you buy from are listed as legitimate sellers.
If you think you have been the victim of a scam, or you suspect a scam, call Consumer Direct Wales for clear practical advice on 08454 04 05 06 or 08454 04 05 05 (Welsh) or Visit – www.consumerdirect.gov.uk/scams
Consumers can report all types of scams at: www.consumerdirect.gov.uk/reportascam
